Not only does MedMen’s acquisition of medical cannabis vendor PharmaCann mark the largest marijuana-related takeover in U.S. history, although the idea underscores how integral retail will be to the cannabis market, MedMen CEO Adam Bierman told CNBC.
“the idea’s a blockbuster deal,” Bierman, who co-founded cannabis cultivator, any along with retailer MedMen in 2010, told “Mad Money” host Jim Cramer in an interview.
“Retail will be the place to be because of the defensibility due to the zoning restrictions along with the limited number of licenses,” Bierman said. “I think retail will be the permanent moat opportunity due to that will industry along with that will’s where we’ll continue to be focused.”
When the $682 million all-stock takeover of PharmaCann will be complete, MedMen will operate 66 licensed retail stores along with 13 factories across 12 states, including within the markets on which MedMen will be primarily focused: California, Nevada along with brand new York.
Dubbing those the best markets for cannabis within the United States, Bierman said PharmaCann will enable MedMen to fast-track some of its growth in those regions, all of which are integral to building MedMen’s already well-known brand. MedMen’s dispensaries have been fondly dubbed by some as the Apple stores of weed.
“Those are the markets where brands will be built, along with as we look into expanding our footprint, the markets PharmaCann will be in are the exact markets we were targeting,” the CEO said. “What that will allowed us to do was leapfrog that will next stage of our growth so we can just hunker down along with focus on execution.”
along with as MedMen continues to grow its business that has a long-term outlook on the nascent cannabis industry, Bierman told Cramer the company had “three buckets” of lasting business drivers the idea would likely keep in mind.
“We develop the business that will we’re building, which will be MedMen. We develop the industry that will we’re building, which will be cannabis. along with then we have an asset class that will we’re building,” Bierman said. “On the asset class, we’re trying to build an asset class in cannabis that will’s investable along with accessible for retail investors all the way up to big institutions.”
“I think that will deal moves the needle significantly in all three of those buckets, so we couldn’t be more excited,” the CEO continued.
According to the press Discharge describing the MedMen-PharmaCann deal, the combined company will be the largest U.S. cannabis company by market reach. MedMen says PharmaCann, which deals largely in medical-only markets, will be additive to MedMen’s recreationally focused business.
Cowen Group estimates that will by 2030, the brand new MedMen’s total addressable market will be roughly $40 billion within the 12 states in which the combined company will operate.
Shares of MedMen hit a brand new 52-week high in Monday’s trading session, closing up nearly 10 percent at $6.26 a share.